Auswirkungen einer geänderten Lohnsteuerzerlegung zwischen Stadtstaat und Umland — das Beispiel Hamburg

Abstract

Within German city states the income tax distribution according to registered residence leads to disproportionately high revenue losses. Due to commuting employees city states lose both their municipal and federal rates to their surrounding residential municipalities and Federal States. This paper simulates the modified distribution of the local income tax revenue in case of an equal split between registered residence and place of work. Emphasis is laid on the fiscal impacts for suburbia. Considering the Hamburg region as an example it is shown that both the city state and the suburban centres would profit from a modified allocation.